Wall Street Expects Broadcom Inc (AVGO) to Grow EPS By More Than 50% Over the Next 5 Years, Should You Invest?
Key takeaways
- Wall Street Expects Broadcom Inc (AVGO) to Grow EPS By More Than 50% Over the Next 5 Years, Should You Invest?
- According to a June 4 report by Reuters, the selloff was triggered by results that fell short of elevated expectations.
- Broadcom plays a critical role in designing custom in-house processors for major clients like Alphabet and Meta, positioning it as a key alternative to Nvidia.
Wall Street Expects Broadcom Inc (AVGO) to Grow EPS By More Than 50% Over the Next 5 Years, Should You Invest? Talha Qureshi Thu, June 11, 2026 at 12:15 AM GMT+7 2 min read AVGO The shares of Broadcom Inc. (NASDAQ:AVGO) have fallen more than 20% since the company reported its fiscal Q2 2026 results. However, analysts expect the company to grow its EPS by more than 50% over the next 5 years, making it one of the Top 10 Unstoppable Growth Stocks to Invest In.
According to a June 4 report by Reuters, the selloff was triggered by results that fell short of elevated expectations. Second-quarter revenue of $22.19 billion missed Wall Street estimates. More importantly, the company chose to reiterate, rather than raise, its $100 billion AI revenue forecast for fiscal 2027, which disappointed investors who had priced in an upgrade. Moreover, the AI chip sales forecast of $16 billion also came in slightly below analyst expectations. The decline in stock price comes despite the AI chip sales representing more than a threefold increase from approximately $5.2 billion a year ago.
Broadcom plays a critical role in designing custom in-house processors for major clients like Alphabet and Meta, positioning it as a key alternative to Nvidia. The stock has gained more than 57% over the past 12 months, even after the recent 20% loss. According to the report, the results dragged the broader chip sector lower. Marvell fell nearly 5%, while AMD, Intel, Micron, and Qualcomm dropped between 1.6% and 6.5%. Moreover, despite the selloff, at least 22 analysts raised their price targets on Broadcom, pushing the median to $500.